Bitcoin has slipped below the $75,000 mark, retreating to price levels last seen before the re-election of United States President Donald Trump, as a combination of regulatory delays, shifting investor sentiment, and broader market adjustments weighed heavily on digital assets.
The world’s largest cryptocurrency dipped beneath the psychologically significant threshold on Monday, extending a period of volatility that has followed months of extraordinary gains.
Market analysts say the downturn reflects growing caution among investors who had previously poured capital into cryptocurrencies on expectations of a more favourable regulatory environment under Trump’s second administration.
Digital assets had rallied strongly following Trump’s election victory in November 2024, driven by his public support for cryptocurrencies and blockchain innovation.
Bitcoin surged past $100,000 just weeks later, a milestone that Trump openly celebrated as evidence of renewed confidence in the sector.
However, recent developments suggest that optimism is being reassessed as legislative progress slows and macroeconomic conditions shift.
Bitcoin drops below $75,000 as US crypto policy momentum stalls
The latest decline in bitcoin prices comes amid mounting frustration over stalled cryptocurrency legislation in Washington.
While the US Congress passed a landmark bill in July to regulate stablecoins—digital currencies pegged to traditional assets such as the US dollar—broader legislation aimed at clarifying the legal status of cryptocurrencies has failed to gain traction.
The much-anticipated Clarity Act, designed to provide comprehensive rules for digital assets, remains stuck in the Senate.
Market participants had hoped the bill would establish clearer oversight, reduce regulatory risk, and attract long-term institutional investment into the sector.
According to James Butterfill, a researcher at digital asset manager CoinShares, the lack of progress has dampened market enthusiasm
“Expectations for meaningful movement on the Clarity Act have not been met,” Butterfill said, describing the ongoing uncertainty as a significant “headwind” for crypto prices.
Analysts note that bitcoin’s rise in late 2024 and early 2025 was driven less by fundamentals and more by policy expectations. As those expectations remain unfulfilled, speculative positions are being unwound.
From record highs to renewed volatility
Bitcoin’s recent slide marks another dramatic turn in a year defined by sharp price swings.
After breaking through $100,000 in December 2024, the cryptocurrency continued to climb, reaching an all-time high of $126,251.31 in October 2025.
That rally was fuelled by strong retail demand, institutional inflows, and optimism surrounding Trump’s pro-crypto stance.
However, the market suffered a sharp setback in April when the announcement of sweeping US tariffs unsettled global financial markets. Bitcoin fell below $75,000 at the time as investors rushed to reduce exposure to risk assets.
Although prices later recovered, analysts warn that the asset remains highly sensitive to policy signals, interest rate expectations, and geopolitical developments.
“Bitcoin is still trading like a high-beta asset,” said one Lagos-based crypto analyst. “When risk appetite fades, crypto is often among the first assets investors sell.”
Fed nomination triggers broader market rebalancing
Bitcoin’s decline deepened following President Trump’s announcement that he intends to nominate Kevin Warsh, a former Federal Reserve governor, as the next chairman of the US central bank.
Warsh is widely regarded as a defender of the Federal Reserve’s independence and a policy hawk on inflation. His potential appointment reassured traditional financial markets, leading investors to rebalance portfolios toward equities and away from alternative assets.
In the aftermath of the announcement, prices of traditional safe-haven assets such as gold and silver dropped sharply. Cryptocurrencies, often grouped with other high-risk assets, also saw heavy selling as investors moved to raise cash.
Market watchers say the reaction underscores how closely bitcoin has become tied to broader financial conditions, despite claims that it functions as a hedge against traditional market instability.
Trump’s crypto ties draw scrutiny
Adding another layer of complexity to the market is the growing scrutiny of Trump’s personal and family involvement in the cryptocurrency sector.
Trump has actively promoted digital assets since returning to office, championing blockchain innovation as part of his economic agenda.
However, critics argue that his close ties to crypto ventures raise questions about potential conflicts of interest.
According to recent Bloomberg estimates, Trump’s family fortune increased by approximately $1.4 billion in 2025, largely driven by digital asset holdings.
Just hours before his inauguration in January 2025, Trump launched his own cryptocurrency token, $TRUMP. The token enjoyed a spectacular debut, riding a wave of political enthusiasm and speculative demand.
Since then, however, the token has lost nearly 90 per cent of its value from its peak, mirroring the volatility seen across the broader crypto market.
Analysts say the rise and fall of politically linked tokens has reinforced concerns about speculation, governance, and investor protection in the sector.
What next for bitcoin?
Despite the current downturn, some analysts remain cautiously optimistic about bitcoin’s long-term prospects, citing increasing global adoption and continued interest from institutional investors.
However, they warn that short-term price movements will likely remain volatile until regulatory clarity improves.
“Without a clear legal framework, crypto markets will continue to react sharply to political signals,” Butterfill noted. “Policy certainty is what the market is waiting for.”
For now, bitcoin’s return to pre-Trump re-election levels serves as a reminder of the asset’s vulnerability to shifting narratives—and the limits of political optimism in sustaining long-term market gains.
